New Canara Bank CEO Targets 35% CASA Ratio

Brajesh Kumar Singh has assumed charge as the Managing Director and Chief Executive of Canara Bank with a clear vision for the institution's future. His primary focus is on enhancing the bank's resource base by increasing its Current Account Savings Account (CASA) ratio, which currently stands below 30%. Singh aims to elevate this ratio to at least 35% to bolster low-cost deposits.

Growth strategies will center on the retail, agriculture, and MSME (RAM) sectors. This strategic emphasis is expected to protect the bank's net interest margin and improve overall financial performance. While the bank's asset quality is already robust, Singh highlighted the importance of strengthening recovery efforts and maintaining control over credit costs. Technology and customer experience are also identified as long-term priorities.

Singh elaborated on credit growth drivers, specifically mentioning the bank's strong position in gold loans and a significant mortgage-based retail portfolio. He plans to accelerate advances in the MSME segment, citing its potential for healthy returns and diversified risk. The bank is also preparing to offer support through the Emergency Credit Line Scheme, with over ₹20,000 crore eligible for lending.

Addressing the RBI's decision to maintain the repo rate at 5.25%, Singh viewed it favorably, citing the advantage of interest rate stability in preventing immediate repricing of advances linked to the repo rate. He also reassured stakeholders regarding the bank's exposure to Rajesh Exports, stating that the residual exposure is minimal, fully provided for, and expected to have no material impact on the bank's financial standing.